What does home mean to you? Buying a home is the biggest financial investment that most people will make, but your home is so much more than that. Inside a home memories are made and families grow. Homeowner’s insurance gives you a strong defense to protect what matters most within those walls.
What Does Homeowner’s Insurance Cover?
Homeowner's insurance is a multi-line insurance policy, meaning that it includes both property insurance and liability coverage.
The property coverage on your homeowners policy protects your home from unexpected risks such as fire, burglary, and vandalism. It pays for the costs of repairs for your home, including other structures such as garages, fences, sheds, or cottages on your property. If you need to temporarily live elsewhere while your home is repaired, your housing and living expenses may be covered, too.
Sometimes it’s not your home itself which needs protection; it’s the things you value inside which could use a strong defense. Your homeowner’s insurance also covers your personal property, such as furniture, clothing, electronics, sporting goods, and other items which matter to you.
Homeowner’s insurance protects your guests and other people within your home, as well. The liability coverage on your policy can cover the costs of medical bills or even a lawsuit if someone is injured while visiting your home.
Types of Homeowner's Insurance Coverages
There are essentially three levels of coverage available in most homeowner's insurance policies:
Actual Cash Value
Covers the house plus the value of your belongings after deducting depreciation.
Actual cash value without the deduction for depreciation, so you would be able to repair or rebuild your home up to the original value.
Guaranteed (or Extended) Replacement Cost
The most comprehensive and pays to repair or rebuild your home regardless of costs.
Do You Need More Coverage for Your Home?
Most homeowner’s policies will cover damage caused by windstorms, hail, snow, lightning, fires, smoke, falling objects, theft, vandalism, aircrafts and vehicles. Additional protection against flood, earthquake, war, termites and poor home maintenance, however, is commonly excluded and often recommended to fully defend your home. Jewelry, art, antiques and other valuable items may not be fully covered in a standard homeowner's insurance policy, so you may need purchase a separate 'floater' policy to insures high value items for their full appraised value.
A homeowner's insurance policy also requires that at least one of the named insureds lives at the home. The dwelling policy is similar homeowners insurance policy, but used for residences that don’t qualify for various reasons, like vacation properties, second homes, and vacancy or non-occupancy of your home.
How Much Does Homeowner's Insurance Cost?
The cost of homeowner's insurance depends on the cost to replace the house and which additional coverages (riders) are attached to the policy. The insurance policy itself is a lengthy contract, and names what will and what will not be paid when a loss occurs.
The homeowner's insurance policy is usually a term contract in effect for a fixed period of time, typically one year. Most carriers lower premiums if the home appears to be a lower risk. Examples of a lower risk house include: if the house is situated next to a fire station or is equipped with fire sprinklers and fire alarms, if the house has wind protection like hurricane shutters or if the house has a security system. Other factors insurance carriers consider include your zip code; if you live in a high-crime area or an area prone to forest fires, your insurance premiums could be higher.
Get Homeowner's Insurance Today
Bodenstein Insurance offers top-rated homeowner’s insurance from the best insurance carriers, so you can protect what matters most to your family. Call us today at (775)782-3030 to find out what homeowner's insurance solutions will best cover the place you call home.